Key Takeaways
- USA Truck Inc. has been sold to a three-man ownership group, UTAC LLC, which includes former CEO James Reed.
- The company will return to private ownership and be led by George Henry as CEO and Zach King as CFO.
- The sale marks a return to US-based ownership for the company, which was previously owned by Danish logistics company DSV.
- USA Truck was founded in 1983 and has a long history in the Arkansas trucking industry.
- The company has faced challenges in the past, including financial losses and executive instability, but is now poised for a new chapter under private ownership.
Introduction to the Sale
The Danish logistics company DSV has agreed to sell USA Truck Inc. to a three-man ownership group, UTAC LLC, which includes former CEO James Reed. The terms of the deal were not released, but the sale marks a significant change in ownership for the company. Reed, who served as CEO of USA Truck from 2017 until it was acquired by DB Schenker in 2022, will take on an advisory role in the new ownership group. George Henry, who oversaw the subsidiary for DSV, will serve as CEO, and Zach King will be CFO. The new ownership group is excited to return the company to private ownership and to US-based ownership, with Henry stating that it is a "welcome home" for USA Truck.
Background on USA Truck
USA Truck was founded in 1983 by Bob Powell and went public in 1992 as a respected regional performer. However, the company hit rough times in the wake of the Great Recession, posting five consecutive fiscal losses from 2009 through 2013 totaling nearly $50 million. The company also experienced instability in the executive branch, cycling through several CEOs before Reed took over in 2017. Despite these challenges, USA Truck has a long history in the Arkansas trucking industry and has been an important part of the community in Van Buren. The company’s legacy is built on its founding by a US Naval Aviator, and the new ownership group is committed to continuing this legacy.
Reaction to the Sale
The sale of USA Truck to the new ownership group has been welcomed by the Arkansas trucking industry. Shannon Newton, president of the Arkansas Trucking Association, stated that it is "great news" for the industry and the community of Van Buren. Newton noted that having an Arkansas trucking company being privately held by Arkansans is something to be proud of, and that it is a good sign for the economy and the community. The sale is seen as a positive development for the company and the industry, and marks a new chapter for USA Truck under private ownership.
Future Prospects
The future prospects for USA Truck under the new ownership group look bright. With a experienced leadership team in place, including Henry and King, the company is well-positioned to build on its legacy and continue to serve its customers and employees. The company’s return to private ownership and US-based ownership is also seen as a positive development, allowing the company to focus on its core business and make decisions that are in the best interests of its stakeholders. As the company moves forward, it is likely to continue to play an important role in the Arkansas trucking industry and to be a major employer and economic driver in the community of Van Buren.
Conclusion
In conclusion, the sale of USA Truck to the new ownership group, UTAC LLC, marks a significant change in ownership for the company. With a experienced leadership team in place and a commitment to continuing the company’s legacy, the future prospects for USA Truck look bright. The company’s return to private ownership and US-based ownership is a positive development, and the sale is seen as a good sign for the economy and the community of Van Buren. As the company moves forward, it is likely to continue to play an important role in the Arkansas trucking industry and to be a major employer and economic driver in the region.